Sweden tells Pakistan to abort Iran gas pipeline plan
17 March 2012
Sweden has opposed Iran-Pakistan (IP) gas pipeline project and has advised Pakistan to go for alternative gas routes. It has also faulted the other project with Turkmenistan, terming it as unviable, according to reports in the Pakistan media.
Sweden is opposed Pakistan's collaboration with Iran because of the strong Western sanctions against that country for its alleged nuclear weapons programme.
Swedish authorities also conveyed to the Pakistan foreign office that the gas pipeline project between Turkmenistan-Afghanistan-Pakistan-India (TAPI) is not workable.
Earlier, a Chinese bank backed off from financing the Iran-Pakistan gas pipeline project. The ICBC was finalised as the financial advisor through an international competitive bidding.
The Industrial and Commercial Bank of China (ICBC) was reluctant to sign the financial advisor contract despite being the lowest bidder.
The financial advisor was responsible for arranging funds for completing the 800km pipeline, at an estimated cost of $1.5 billion.